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NEC Section 300.20     

                            
    Section 300.20. Induced Currents in Metal Enclosures or Metal Raceways.
(A) Conductors grouped together. Where conductors carrying Alternating current are installed in metal enclosures or metal raceways, they shall be arranged so as to avoid heating the surrounding metal by induction. To accomplish this, all phase conductors and, where used, the grounded conductor and all equipment grounding conductors shall be grouped together.
    While this addresses how to eliminate inductive heating in cable runs, it does not address eliminating them at or near the point of termination. This has caused many to believe that inductive heating can be generated on something as small as the surface of a bolt or water pipe and can have dangerous consequences. It is developed in ferromagnetic material by nearby current-carrying conductors. Two electromagnetic properties combine to create this heat, hysteresis and eddy currents.
    Hysteresis is the tendency of ferromagnetic material to hold remnant flux. If a ferromagnetic material is subjected to a magnetic field it will retain some of that magnetic flux. You can see this for yourself - put a magnet on a nail for one minute. Remove the magnet and for some time the nail will act as a magnet itself. If a ferromagnetic material is subjected to a changing magnetic field (as with an AC circuit) the alternating field causes losses within the material; this leads to a buildup of heat. AC conductors produce an alternating magnetic field around the surface of the conductors when they are carrying current. When all three phases and the neutral of a three-phase system are bundled together, the magnetic fields cancel each other. This is the reason that with multiple conductors per phase, the conductors are not run in phase groups, but instead run with all three phases and a neutral in a conduit using as many conduits as there are conductors per phase.
    Eddy currents are generated in conductive material when they are placed perpendicular to the magnetic field produced by AC systems. They can be generated in a flat piece of sheet metal or around the surface of a water pipe. The inductance of ferrous material causes these relatively low currents to generate considerable heat. Eddy currents are avoided by not allowing a path for the current to travel (such as slotting an enclosure surface).
    These properties are most often associated with transformers and reactors. Transformers avoid eddy currents through the use of multiple insulated laminations that eliminates the conductive path. Meanwhile hysteresis, due to the heat it generates, remains the primary form of transformer losses.
    The effects of this field can be cancelled on nearby objects by running all phases, neutral and ground together. Bind the varied conductors together and the fields cancel each other. Often times this can be difficult at the point of termination, where phases, neutral and ground must be separated. It can also be difficult at the point where the conductors enter or exit an enclosure. At any point the conductors are separated, no matter how small, inductive heating can develop.
    How do you avoid inductive heating? At any point the conductors separate, be careful of the components you select for bracing. Avoid using ferromagnetic materials in favor of aluminum or fiberboard.

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